Four Undeniable Truths of Power in Negotiation

Power is often defined as a lack of dependence on others

If we break it down further, Power can both be real or perceived, as subjective as it is objective in that it is something that exists in people's minds. It involves a relationship between two or more people and if we extend this further, we see that it person X has power over person Y, he or she can get Y to do something Y would not otherwise do. 

This stays true in real-life negotiation scenarios and it brings us to highlight the "Four Undeniable Truths of Power in Negotiation"

1. Information still reigns supreme: the more you have the more powerful you are

Having relevant and vital information on the other party and their company and department puts you in power of the outcome of the negotiation. A negotiator knowing their counterpart’s reservation price, he or she can quite simply make an offer that is slightly better than that price. Complimentary information that supports your discussions can also include knowledge of cultural practices and insight into the opponents’ worries and constraints, as well as general expertise in negotiation. Furthermore, taking the role of being an 'information digger', through smart questioning, you are able to guide and direct the discussion in any way you desire. That control gives you power over the topics of conversation and therefore puts you in the driving seat in the sitting.

2. Your alternative has to be better than 'Good' 

Your BATNA (Best Alternative To a Negotiated Agreement) must be strong. Very strong. It could be the biggest source of power. By having a valuable alternative offer, it allows a negotiator to put pressure on the opponent, "if you are unable to meet these expectations, I will be forced to go with Supplier A". Furthermore, negotiators use alternatives as a reference point when making offers to the other party. You can be more ambitious and aggressive when your alternative offer is highly competitive. 

3. Be a shot-caller or reach a high status

Low-status representatives defer to those with higher status. When you are ranked high in the company, you are favoured to attain the respect of your counterparts. You won't need to work on building that status with the other side and proving yourself to them, rather it is the title your company assigns you and your seniority level to sign off on the deal that speaks volumes.

If you are not yet at that level, look to build status long in advance of the negotiation by building a reputation as a competent, trustworthy player.

4. An influencer is always listened to and respected

The more social or professional connections a negotiator has, the more likely it is that he or she is seen as being more influential. The higher ranking or more influential these connections are, the stronger sense of influence you project and ultimately have in the eyes of your counterpart. If you have a large social network, negotiators increase the chances of improving their alternatives, acquiring valuable information about the counterpart and gaining the visibility that is a precursor to high status.

Since 2005, Giuseppe Conti has been an award-winning Lecturer, recognized for his lively and interactive training workshops across a number of the leading business schools in Europe: Cambridge, EPFL, ESADE, HEC Lausanne, HEC Paris, IESE, IMD, Imperial College, INSEAD, London Business School, Oxford, RSM, SDA Bocconi, UBIS, University of Geneva and University of St Gallen.

More recently, he has become a Professor in Negotiation & Influencing. Giuseppe regularly runs negotiation workshops in four continents. Corporate leaders from multinational corporations and individuals from over 110 different countries have attended his workshops.